COAL MINE CLOSED

Sun (Auckland), Volume III, Issue 686, 11 June 1929, Page 7

COAL MINE CLOSED

80 MEN UNEMPLOYED CHARGE AGAINST OFFICIAL Press Association WELLINGTON, Monday. In a lengthy statement, Mr. T. O. Bishop, secretary of the Coal Mineowners’ Association, joins issue with Mr. A. McLagan, representative of the United Mine Workers of New Zealand, concerning the latter’s statements in an interview with the Hon. W. A. Veitch, Minister of Mines and Labour, in connection with the closing of Shag Point Colliery. Mr. McLagan’s statement that the company sought to impose a reduction cf 10 per cent, in wages and when the men declined to accept, notice was served on them of intention to close down the mine, was incorrect, said Mr. Bishop. The position was that, for the past two years, the company had been losing two shillings a ton on all coal produced and sold. As a wages agreement was falling due on April 4, the company sought, two months before, to obtain the men’s consent to a new award with rates of wages reduced by about 5 per cent., to enable the mine to carry on. The union refused, stating they, too, were seeking an award, but for increased wages. The union also refused the company’s offer to pay a chartered accountant employed by the union itself to examine the company’s books and see for themselves the actual position. An alternative offer by the company to hand the mine over to the men to be worked by them under the supervision of the company's manager on some co-partnership basis was also refused by Mr. McLagan. The Miners’ Union also refused discussion for a working basis unless the mine, which was closed down on March 28, was opened unconditionally. The company’s terms would have given truckers 16s a day and piece rate workers an opportunity of earning not less than £1 a day with a guaranteed minimum of 18s a day. Mr. McLagan’s proposal was that the company should join him in asking the Government to pay more for coal supplied to the Railway Department. The company refused unless the miners were prepared to help the industry by accepting some reduction. Further suggestions by the company involving a slight reduction in wages to allow the mine to pay its way have not been accepted by the union.

Mr. Bishop concludes by saying that these 80 men are on the unemployment market as the effect of Mr. McLagan’s own attitude toward the company s reasonable proposals. The company has now gone into liquidation and tenders are invited for the purchase of the mine as a going concern. The lease has nine years to run.